Kentucky Telecommunications and Utility Taxes

Amazon Prime subscriptions and streaming video purchases or rentals may be subject to Kentucky's telecommunications excise tax and gross revenues tax. These taxes apply to multichannel video and audio programming services, telephone communications services, and related services under KRS 136.600 > 136.660.

The rate you are charged depends on the type of service and your location. For streaming video and audio programming, the combined state rate is 5.4%. For telephone communications services, the combined state rate is 4.3%. In addition, certain school districts impose a Utilities Gross Receipts License Tax (UGRLT) on these services, which may result in a higher total rate.

For example, a customer in a school district with a 3% UGRLT purchasing a streaming service would be taxed as follows:

Multi Channel Video Programming Excise Tax (State): 3.0%

Gross Revenues Tax (State): 2.4%

Utilities Gross Receipts License Tax (Local): 3.0%

Total: 8.4%

The UGRLT rate varies by school district, so your total rate may differ. The UGRLT is collected based on your primary service address. To ensure the correct tax is applied, verify that your primary address is up to date under Your Account > Payment Methods.

For more information on applicable rates and exemptions, you may find the following link helpful: https://revenue.ky.gov/Business/Telecommunications-Tax/Pages/default.aspx